- Overview: Romania
- Global HR Compliance
- Global PEO and Payroll
- Expand without a company set up
- Contractor vs. Employee: Which Is Better?
- Work Permit for Hiring Expats via PEO
Employer of Record (EOR) in Romania
Employer of Record: Understanding the Concept
An Employer of Record (EOR) is a third-party company that provides employment services on behalf of another company. The EOR becomes the legal employer of the client company’s workers and assumes responsibility for all employment-related tasks, such as payroll, taxes, benefits administration, and compliance. The client company retains control over its workforce’s day-to-day management, while the EOR takes care of employment’s administrative and legal aspects.
An employer of record is a company that provides employment services on behalf of another company. The employer of the record assumes legal responsibility for employment management and administers payroll, taxes, and benefits. This arrangement allows the client company to focus on its operations without worrying about HR management.
What Is a Global Employer of Record?
A Global Employment Organization (GEO) is a subset of employers of record that perform their duties internationally in several countries worldwide. Global Employers of Record like Acumen International allow clients to rapidly engage with an international workforce and comply with complex labor laws and country-specific tax regulations without having to set up local entities or risk violating local employment laws.
Difference between Employer of Record and Global Employer of Record
While an Employer of Record (EOR) assumes legal responsibility for employment management on behalf of a client company, a Global Employer of Record takes on this role for international companies. A Global EOR acts as a single point of contact for managing employment compliance, payroll, taxes, benefits, and other HR functions across multiple countries and jurisdictions. This can be particularly valuable for companies expanding globally and needing to navigate the complexities of different labor laws, tax regulations, and cultural differences.
A Global EOR can provide services from managing local payroll and benefits to ensuring compliance with local labor laws and regulations. The Global EOR can also support international hiring, onboarding, offboarding, and visa and work permit applications. By using a Global EOR, companies can benefit from a consistent and streamlined approach to HR management across multiple countries and regions while minimizing their exposure to legal and financial risks.
Global Employment Services by Acumen Global Employer of Record in Romania
Romania is attractive for international companies who want to do business in Europe and beyond. However, establishing a permanent business entity in Romania is not always the optimal solution for companies just beginning to explore Romania’s business landscape. Even if a permanent in-country entity is your goal, you may need to gather a boots-on-the-ground team to help you get things up and running before incorporation.
In either case, or if you are an agency representing a corporate client, Acumen International offers a perfect global Employer of Record (EOR) solution for legal and compliant hiring and compensating your workforce in Romania.
2. Global Mobility
5. Payroll Administration
6. Working Time & PTO Processing
7. Benefits Administration
8. Tax Administration & Reporting
|Talent skilled in highly-specialized areas||Employee Work Visa and Work Permit sponsorship||Health checks||Employment Agreement drafting||In-country registration with statutory bodies||Working hours||Mandatory Benefits||Tax Reporting frequency and requirements;||Employment agreement termination:|
|Executive search||Dependent Visa||Criminal record checks||Compliant worker onboarding on your behalf||Day-to-day payroll management||Overtime||Health insurance||Employer taxes & contributions||Dismissal – by the employer|
|Contingency workforce||Visa extension||Background checks||Account setup in the payroll and HR system||Monthly pay slips or other pay frequency||Public holidays||Workers’ compensation||Employee taxes & contributions||Resignation – by the employee|
|Application for a sponsor license for a foreign national||Education checks||Employee data entry and records maintenance||Accruals||Annual leave||Unemployment insurance||Withholding tax||Termination by mutual agreement|
|Relocation assistance||Managing probation periods||Allowances||Parental leave||Voluntary Benefits||Local tax payments and reporting to local authorities||Notice period handling|
|13th and 14th salary||Sick leave||Share plans for executives||End of financial year reporting||Final settlement & severance payments|
|Additional leave||Bonuses & Equipment provision||De-registration with statutory bodies|
|Expenses reimbursement & business trip processing|
|Health insurance, dental treatment|
9 Global Employment Challenges to Consider
As more and more companies expand their operations globally, managing a diverse international workforce effectively becomes increasingly essential. This Global Expansion Guide seeks to address four key areas where many companies fail in their attempts at global talent management. With our practical and hands-on solution addressing all four challenges, your company can avoid these pitfalls, start globalizing quickly and efficiently, and become a market leader!
The old saying goes, “The devil is in the details.” And when it comes to expanding your business internationally, this can be painfully true. Before taking the plunge into unfamiliar territory, every little detail must be carefully considered.
As you prepare to expand internationally, it’s crucial to understand how each factor impacts the overall success of your business. Here are some global expansion challenges.:
- Every country in the world has its own set of unique laws for businesses.
- The legislative and regulatory landscape is ever-evolving. Keeping track of changes is cumbersome.
- Global HR Compliance challenges.
- Need to understand and keep track of ever-evolving local labor laws and tax regulations across multiple jurisdictions.
- Need to understand the local labor market.
- Need to understand local business practices pertinent to employment.
- Need to adhere to the company’s global employment and business immigration policies.
- Need to understand local competition and benchmark against standard business practices.
- Working with different languages, time zones, customs, and cultures.
No matter which countries you expand to or what type of operation you open, there are some significant issues you will always have to deal with.
Global expansion decisions come with a lot of moving parts. The decision to expand internationally can significantly impact your business, so it’s essential to make sure you handle it correctly.
Prevent Employee Misclassification Risk
Technology companies always try to find cheaper and easier ways to expand their business. Using independent contractors to launch in a new country is one solution. While it sounds like a simple solution, and these workers provide flexibility and cost savings, there are more than a few legal and compliance risks that companies need to consider before leaping. One of the most significant risks is misclassifying contractors, leading to severe penalties. The company must be careful not to fall into this trap.
Employee misclassification occurs when an employer misclassifies a worker as an independent contractor rather than an employee. Penalties are harsher than you might think. Suppose contractors working for your business are considered permanent employees and therefore misclassified. In that case, labor authorities will consider them full-time and backdate payroll taxes onto your business and the workers. Getting compliant can be tricky — it requires a lot of effort and time, which costs money. It’s better to take a proactive approach by outsourcing to a reliable Global Employer of Record partner.
A Global Employer of Record (Global EOR) can help prevent employee misclassification risk in several ways.
- Firstly, the Global EOR has expert knowledge of local labor laws and regulations in each country of operation, including Romania. This includes knowledge of the legal definitions and criteria for determining employee versus independent contractor status in Romania. With this expertise, the Global EOR can help ensure that the client company correctly classifies its employees according to Romanian laws.
- Secondly, the Global EOR can ensure that the client company is in compliance with local labor laws and regulations in Romania. The Global EOR can help the client company adhere to employment standards, such as minimum wage, overtime pay, and vacation entitlements in Romania. The Global EOR can also ensure compliance with tax regulations, such as withholding taxes and filing requirements in Romania. These measures can help reduce the risk of misclassification in Romania, often due to non-compliance with local laws.
- Thirdly, the Global EOR can provide a consistent approach to HR policies and practices across multiple countries and regions, including Romania. By standardizing HR practices, the Global EOR can help ensure that employees in Romania are treated fairly and consistently, regardless of their location or employment status. This can also help avoid situations where one group of employees in Romania is classified differently than another in the same company.
- Fourthly, the Global EOR can help maintain proper documentation and record-keeping practices in Romania. Proper documentation can be critical in demonstrating compliance with Romania’s local labor laws and regulations. The Global EOR can ensure that the client company has proper documentation related to employee classification, payroll, benefits, and other HR functions in Romania. This documentation can help avoid misunderstandings or disputes regarding employee status in Romania.
- Finally, by outsourcing HR management to a Global EOR, the client company can minimize its exposure to legal and financial risks associated with employee misclassification in Romania. The Global EOR can help ensure that the client company is in compliance with local laws and regulations in Romania, which can help prevent costly legal disputes and penalties.
Difference between Employer of Record and Global Employer of Record
While an EOR assumes legal responsibility for employment management on behalf of a client company, a GEOR takes on this role for international companies. A Global EOR acts as a single point of contact for managing employment compliance, payroll, taxes, benefits, and other HR functions across multiple countries and jurisdictions. This can be particularly valuable for companies expanding globally and needing to navigate the complexities of different labor laws, tax regulations, and cultural differences.
A Global EOR can provide a range of services, from managing local payroll and benefits to ensuring compliance with local labor laws and regulations. The GEOR can also provide support for international hiring, onboarding, and offboarding, as well as visa and work permit applications. By using a GEOR, companies can benefit from a consistent and streamlined approach to HR management across multiple countries and regions while minimizing their exposure to legal and financial risks.
Benefits of Using a Global Employer of Record in Romania
|Compliance with local labor laws and regulations||A Global EOR can ensure that the client company is in compliance with local labor laws and regulations in each country of operation. This can help minimize the risk of penalties, legal disputes, and reputational damage.|
|Streamlined payroll and benefits administration||A Global EOR can manage payroll and benefits administration across multiple countries and currencies, providing a single point of contact for employees and reducing administrative overhead for the client company.|
|Improved international hiring and onboarding||A Global EOR can support international hiring and onboarding, handling issues such as visa and work permit applications, background checks, and local contract negotiations. This can help the client company attract and retain top talent in different regions.|
|Access to local expertise||A Global EOR can provide access to local HR expertise, such as knowledge of local labor laws and regulations, tax regulations, and cultural differences. This can be particularly valuable for companies expanding into new markets and navigating unfamiliar environments.|
|Reduced risk and cost||By outsourcing HR management to a Global EOR, the client company can minimize its exposure to legal and financial risks, such as penalties for non-compliance with local laws and regulations. The Global EOR can also provide economies of scale and reduce costs associated with setting up and maintaining HR infrastructure in different countries.|
Global EOR (Employer of Record) in Romania: Save Up to 80% of Employee Management Cost
|Average Cost & Time||Our Solution *|
|Time to Market||10+ weeks||72 hours|
|Legal Advisors Fees||$ 10 000 +||………….|
|Official Employment & Benefits||$ 20 000 +||………….|
|Incorporation & Liquidation Costs||$ 11 000 +||………….|
|Bank Account Setup||$ 2 000 +||………….|
|Maintenance costs, in-house staff to manage the foreign entity, payroll, and administration.||$ 25 000+||………….|
|The approximate total cost of new market entry**||$ 74 000 +||$ 15 000|
* Per one Employee
** Costs vary from country to country
Spotlight on Romania
Romania is a developing country with a high-income economy. Romania is a member of the European Union.
Location: Romania is in Europe, bordering Ukraine, Bulgaria, Serbia, Moldova, and Hungary.
Currency: New Romanian Leu (RON).
Official language: Romanian.
Population: 19,511,000 (2022).
Labor force: 9.47 million (2021).
Most developed industries: services, agriculture, and industry with electric machinery and equipment, auto assembly, textiles and footwear, light machinery, metallurgy, chemicals, food processing, petroleum refining, mining, timber, and construction materials.
Main trading partners: Germany, Italy, and France.
Minimum statutory salary: Romania has a government-mandated minimum wage. The minimum wages have been revised in Romania, with effect from 01 January 2023. The minimum wage is increased from RON2,550.00 to RON3,000.00 per month and RON15.
Thirteenth salary and other additional remunerations: Romania has no statutory requirement for a 13th salary payment.
Ensure Compliance When Hiring and Payrolling Employees in Romania with Acumen’s Global Employment Solution
Acumen International offers a reliable and comprehensive solution to help businesses legally onboard and payroll employees in Romania. We understand the nuances of Romanian employment laws and regulations and are committed to ensuring 100% compliance for your company.
Our Global Employer of Record (EOR) solution is designed to assist international companies in expanding globally by engaging the best talent in Romania for your projects. With our global employment solution, you can avoid compliance risks and save money by hiring and compensating your local and ex-pat workforce in Romania on your behalf.
We can help you navigate the complexities of Romanian employment regulations and ensure that your Romanian employees are employed and payrolled compliantly. In addition, we can also assist with work permits, provide business visa sponsorship for your expatriate team, and employ them on your behalf once legal permissions are obtained.
Partnering with Acumen International as your primary global Employer of Record services provider ensures that your overseas employment and HR needs are handled. You can rely on us to meet all legal requirements for compliant hiring and compensating your local and expatriate employees in Romania and the 190 countries where we serve our international clients. Choose Acumen International for a hassle-free, compliant, cost-effective global employment solution.
Expand Your Presence in Romania with Acumen’s Global Employment Solution
Acumen International’s Employer of Record (EOR) solution in Romania offers a cost-effective and efficient alternative to setting up your own company or engaging in direct hiring. Through our EOR solution, we can legally employ your Romanian workforce on your behalf, allowing you to operate in the country and expand your global presence without the need to establish a local business entity.
By partnering with Acumen, you can avoid the time-consuming and complex process of registering your business in Romania and the associated costs. Our EOR solution enables you to enter the Romanian market quickly and cost-effectively, without any need for an established legal presence.
Furthermore, our solution provides a hassle-free approach to global workforce management. Our team of HR experts in Romania takes care of all employment compliance, from onboarding to payroll processing and statutory benefits administration.
In addition, our Global EOR solution allows you to expand your global presence beyond Romania, as we serve our clients in 190 international markets. This means you can leverage our global expertise and network to expand your business operations worldwide with the same hassle-free approach to global workforce management.
Overall, Acumen’s EOR solution in Romania offers a convenient and cost-effective way for your company to enter the Romanian market and expand your global presence without the need for complex legal processes or direct hiring. Partner with us and focus on growing your business while we take care of your compliance and HR tasks.